News
STOCKHOLM – NOTE today reported September sales of $50.7 million, up 2.2% over a year ago. Operating profits were $1.8 million, down 50%. Net profits were down 59% to $980,000.
The operating margin of 3.6% is down 50% from last year. The EMS company took $1.2 million in restructuring charges for the quarter.
Through September, NOTE had nine-month sales of $164 million and a net profit of $7.3 million. Year-to-date operating profits were $5.6 million. To date, the EMS provider has taken $3.8 million in charges for ongoing restructuring. Profit after items, but before taxes, was $9.8 million, down more than 50% year-over-year. Operating margins are 3.4%, down from 6.5% last year.
NOTE is transferring labor-intensive production and sourcing services to lower-labor rate countries, and cutting its headcount in Sweden by 200 staff, or just over 25%.
BREST, FRANCE – Jabil Circuit will close, sell or otherwise restructure its plant here, a local paper reported this week.
Ouest France is reporting the site’s revenues are 25% below expectations. The plant employs about 300 workers, down from 515 a year ago, when Alcatel-Lucent reportedly moved production from the site to a Solectron (now Flextronics) plant in China.
Jabil acquired the site and its then 700 employees from Alcatel in 2002.
CORINTH, MI – Ayrshire Electronics has acquired ACT Electronics' facility here for an undisclosed amount.
In doing so, Ayrshire saved the largest EMS factory in the US – some 350,000 sq. ft. – and the jobs of about 200 full-time workers and 50 more part-timers.
In a statement, the office of Gov. Haley Barbour said, "Ayrshire Electronics ... is expected to keep 200-plus workers on the job under the umbrella of a new corporate structure and new management effective as early as (today)."
Last month ACT put the plant, formerly owned by ITT, up for sale.
Ayrshire operates five plants in the Midwest and Mexico.
